IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
M/s. Dayasadan, Rep. by its General Secretary, Ratanchand Daga No.373, Konnur High Road, Chennai – 600012 - Petitioner
Versus
The Madras Pinjrapole, Rep. by its Honorary Secretary, Sri Vitaldas Jagnathadas, No.383, Konnur High Road, Chennai – 600012 - Respondent
C.R.P.No.538 of 2022 and C.M.P.No.2828 of 2022
Decided On : 07-02-2023
Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 - Section 25, 2(2), 4 - Challenging decree modifying fair and decreetal order - Fixation of fair rent - Petition has been filed, challenging judgment and decree passed modifying fair and decreetal order – Held, Modification of fair rent fixed by Rent Control Appellate Authority is in consonance with established principles, since Rent Control Appellate Authority has taken into consideration type of building, age of building, plinth area, cost of construction, basic amenities, depreciation, apportioned area, schedule amenities, land value etc., for purpose of calculating fair rent in accordance with provisions of Act - Petitioner/tenant is in occupation for long years and now, landlord has filed a petition for eviction under New Act - Arrears of rent is to be settled for about 214 months and therefore, revision petitioner/tenant is a chronic defaulter in payment of rent and for all these reasons, this Court is not inclined to hold that order passed by Rent Control Appellate Authority, modifying order passed by Rent Controller is infirm - Petition dismissed.
ORDER :
[Prayer: Civil Revision Petition is filed under Section 25 of the Tamil Nadu Buildings Lease & Rent Control Act, as amended by Act 23 of 1973 and by Act 1 of 1980, praying to set aside the judgment and decree dated 23.12.2020 passed in R.C.A.No.884 of 2006 by the Learned VIII Judge, Court of Small Causes at Chennai, [Rent Controller Appellate Authority] modifying the fair and decreetal order passed in R.C.O.P.No.722 of 2005 dated 04.04.2006 by the Learned XI Judge, Court of Small Causes at Chennai, [Rent Controller]].
1. The Civil Revision Petition has been filed, challenging the judgment and decree dated 23.12.2020 passed in R.C.A.No.884 of 2006, modifying the fair and decreetal order dated 04.04.2006 passed in R.C.O.P.No.722 of 2005.
2. The revision petitioner is the tenant and he is in occupation of the petition premises, measuring about 35.58 grounds (about 6 acres). In the subject property, 15 structures as tabulated by the landlord were constructed by the tenant. The office room was constructed by the Lions Club. The cost of the construction was to be considered as a donation by the Lions Club. Item Nos.13-15 were constructed for dwelling purposes and therefore, the revision petitioner states that they are not liable to pay rent as demanded by the landlord. The revision petitioner claims that they have spent about Rs.9,08,487.75 for construction works and the income and expenditure of the revision petitioner is monitored by the Government of Tamil Nadu.
3. The revision petitioner Society has been in occupation of the schedule premises from the year 1954 onwards and the petitioner is a Charitable institution, commenced its functioning under the order of the Government in G.O.No.1761, Home Department dated 23.06.1955.
4. The grievances of the respondent/landlord is that the fair rent has not been settled and even now, the arrears of fair rent as directed by the Rent Appellate Authority has not been settled. The respondent/landlord is made to suffer unnecessarily for a longer period and the revision petitioner is dragging on the proceedings, which all are pending before the Courts and even the RLTOP.No.371 of 2021 filed for eviction of the tenant under the TN Act 42 of 2017 is also prolonged and protracted on account of the pendency of the present Civil Revision Petition.
5. The Rent Controller considered the issues regarding the fixation of fair rent and accordingly, fixed a sum of Rs.2,85,314/- per month as fair rent to be paid by the revision petitioner/tenant to the respondent/landlord. The revision petitioner/tenant preferred an appeal in R.C.A.No.884 of 2006 against R.C.O.P.No.722 of 2005, wherein the Rent Control Appellate Authority adjudicated the issues on merits and modified the order passed by the Rent Controller on 23.12.2020 and accordingly, fixed a sum of Rs.2,75,930/- as monthly fair rent to be paid by the revision petitioner/tenant to the respondent/landlord. The Rent Control Appeal was partly allowed and the fair and decreetal order passed by the Rent Controller was modified. Challenging the said order dated 23.12.2020, the present Civil Revision Petition is filed.
6. The learned counsel for the revision petitioner contended that fair rent fixed by the Rent Control Authority is not only exorbitant, but also made without considering the expenditure met out by the revision petitioner/tenant for building constructions. The Auditor report marked as document would reveal that the petitioner/tenant, by spending huge amount, constructed the building for the maintenance of inmates and those facts were not taken into consideration by the Rent Control Appellate Authority. It is contended that as per the petitioner's Engineers Report, the fair rent assessed was approximately about Rs.77,000/- and therefore, the Civil Revision Petition is to be considered.
7. The learned counsel for the petitioner/tenant drew the
N. Shetti And Another Vs. Prakash N. Rudrakar And Others
The main legal point established is the correct assessment of fair rent under Section 4 of the Tamil Nadu Buildings (Lease & Rent Control) Act, 1960.
The court emphasized the importance of consistent statements and timely proceedings in rent control cases, and recognized the landlords' genuine need for additional accommodation.
Point Of Law : Tenancy is only in respect of the land and the building was constructed by the tenant, the authorities under the Tamil Nadu Buildings (Lease and Rent Control) Act, will not have jurisd....
The court affirmed that landlords can seek fixation of fair rent under statutory law even during the existence of a long-term lease agreement.
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